White Rock releases maiden resource for Red Mountain project

By Trevor Hoey. Published at Apr 26, 2017, in Small Caps

White Rock Minerals (ASX:WRM) has released its maiden independent Mineral Resource estimate for the Red Mountain project located in a highly prospective region of Alaska, 320 kilometres north of Anchorage.

The Statement of Mineral Resources compiled by RPM Global Holdings (RPM), formerly RungePincockMinarco Limited, is reported in accordance with the requirements of the 2012 JORC Code.

The mineral resource relates to WRM’s Dry Creek and West Tundra Flats deposits, part of the Red Mountain project. One of the most important takeaways was the sizeable high grade inferred mineral resource of 9.1 million tonnes grading 12.9% zinc equivalent for 1.2 million tonnes of contained zinc equivalent at a 3% zinc cut off.

RPM has provided some informal modelling based on potential open pit/underground mining strategies which FinFeed will examine after discussing the headline numbers.

While this does not constitute a scoping study, it provides some insight into options that may be open to WRM, as well as taking into account other variables such as different cut-off grades that could be deemed appropriate depending on management’s decision to opt for an open pit and/or underground mining strategy.

It should be noted here that WRM is an early stage play and investors should seek professional financial advice if considering this stock for their portfolio.

Headline numbers are impressive

The total inferred mineral resource of 16.7 million tonnes grading 8.9% zinc equivalent for 1.5 million tonnes of contained zinc equivalent at a 1% zinc cut off for Dry Creek, 3% zinc cut off for West Tundra Flats and 0.5% copper cut-off for the Dry Creek copper zone highlights the fact that Red Mountain is a quality base and precious metal asset. It should also be noted that mineralisation commences at surface and is open down dip.

The Mineral Resource places the Red Mountain project in the top quartile of undeveloped high grade volcanogenic massive sulphide VMS (zinc, silver, lead, gold, copper) deposits globally.

Base and precious metal content includes 678,000 tonnes of zinc, 286,000 tonnes of lead, 53.5 million ounces of silver and 352,000 ounces of gold.

The cut-off grade was calculated to report the Mineral Resource contained and to demonstrate reasonable prospects for eventual economic extraction. A 1% Zn cut-off was used for Dry Creek in consideration that sufficient grades are obtained for the combined elements with a likely open pit mining method. A higher cut-off grade of 3% Zn as indicated below was used for West Tundra Flats in consideration of the likely underground mining scenario.

Commenting on the release of the maiden resource and reflecting on the implications for the broader project, WRM’s Chief Executive Matt Gill said, “Establishing a Mineral Resource estimate for the two deposits at Red Mountain underpins our belief that the Red Mountain project can be home to a new camp of high grade zinc-silver-gold VMS deposits”.

Gill highlighted the fact that the maiden Mineral Resource estimate validates WRM’s view on the potential for the district to yield further high-grade VMS deposits. On this note he said, “Our recent examination of the historical geochemical and geophysical databases using a combination of world experts in the fields of VMS mineralisation and electromagnetics has already identified 30 conductors that are associated with geochemical anomalism”.

WRM has only scratched the surface at Red Mountain

Indicating these recent results could just be the tip of the iceberg, Gill said, “We are highly encouraged by this initial Mineral Resource estimate, especially as it only encompasses a small portion of our total tenement holding, and we look forward to adding considerable additional discoveries in the near future.”

WRM is now preparing a program to advance the understanding of the project, focussing on the already defined geophysical targets that exhibit the same signatures as the two zones that have already been drilled.

The high priority VMS targets are conductors located within zones of anomalous surface geochemistry that are indicative of proximal VMS mineralisation as illustrated below. The proposed field work will include surface geochemical sampling and ground geophysics to define drill targets for follow-up.

View Our Investment Portfolios



S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!